Increases indirect ownership

RNS Number : 7267X

Hutchison China Meditech Limited

10 December 2010

 



Hutchison China MediTech Limited ("Chi-Med")

(AIM: HCM)

China Healthcare Division

Chi-Med increases indirect ownership of its Hutchison Baiyunshan joint venture

London: Friday, 10 December 2010: Chi-Med, the pharmaceutical and healthcare company based primarily in China, today announces the intended indirect increase in its ownership of Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS"), one of the companies which comprise Chi-Med's China Healthcare Division.

HBYS primarily engages in the manufacture and sale of over-the-counter traditional Chinese medicines. Chi-Med's wholly-owned subsidiary, Hutchison Chinese Medicine Holding Limited, has entered into agreements with Bestchosen Limited ("Bestchosen"), Dian Son Development Limited and Hutchison BYS (Guangzhou) Holding Limited ("HGHL"), to increase its equity interest in HGHL from 75% to 80%, for a total cash consideration of approximately US$2.7 million.  HGHL currently indirectly holds 50% interest in HBYS.

Since its first full year in 2006, HGHL has recorded compound average annual sales growth of 25% as a result of growth in HBYS antiviral drug sales driven by the severe flu seasons in China in recent years.  The sales and net profits of HGHL in 2009 were US$67.8 million and $7.4 million respectively.

Bestchosen was a 25% shareholder of HGHL and was a related party to Chi-Med under Rule 13 of the AIM Rules for Companies and accordingly, where the transactions with Bestchosen contemplated in one of the above agreements constituted related party transactions for the purposes of AIM Rule 13.  Chi-Med's directors consider, having consulted with Chi-Med's nominated adviser that the terms of the transactions with Bestchosen are fair and reasonable insofar as Chi-Med's shareholders are concerned.

Ends

Enquiries

Chi-Med Christian Hogg, CEO	Telephone: [phone]
Citigate Dewe Rogerson Anthony Carlisle David Dible	Telephone: [phone] Mobile: [phone] Mobile: [phone]
Lazard & Co., Limited Paul Gismondi Nick Fowler	Telephone: [phone]

About Chi-Med

Chi-Med is the holding company of a pharmaceutical and healthcare group based primarily in China and was listed on the Alternative Investment Market of the London Stock Exchange in May 2006. It is focused on researching, developing, manufacturing and selling pharmaceuticals and health oriented consumer products.

Chi-Med is majority owned by Hutchison Whampoa Limited, an international company listed on the Main Board of The Stock Exchange of Hong Kong Limited.

 

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